Sido targets entrepreneurs in funding

Dar es Salaam. The Small Industries Development Organisation (Sido) will launch a new centre for packaging, an entrepreneurship development fund, technology leasing services and an SME portal in 2016.

Sido Director General Omar Bakari, told journalists here yesterday: “We have come up with these plans to develop small industries by using our own resources and experts. We mainly target women and the youth.”

According to him, plans are underway to launch the packaging centre in March to tackle challenges of creating labels and packaging for small industries.

He said although small-scale industrialists countrywide would be accessing such services in their areas, the main centre would be in Dar es Salaam and would cost Sh312 million ($150,000) to set up.

He also said Sido and CRDB Bank recently launched a pilot project to enable entrepreneurs from Arusha, Kilimanjaro, Manyara, Singida, Mbeya, Morogoro and Dodoma to access working capital.

According to him, Sido has entered into an agreement with CRDB to start an entrepreneurship development fund which currently has Sh1.7 billion to give loans to SMEs. “Sido will be guaranteeing the SMEs to access loans although we are currently facing a huge challenge after it was discovered that the majority have defaulted other loan facilities,” he said.

He said they had already received applications for Sh600 million but were still going through them to sort out defaulters.

Regarding the technology leasing services, he said they were being undertaken in cooperation with a Canadian company.

He explained that plans were also underway to launch an SME portal which will be having all the necessary information on SMEs countrywide.

“We plan to launch it next month and will be a solution to investment challenges and it will be easier to help them immediately by linking them to financial institutions,” he said.